Our Arctic Neighbors: Total joins Russians on Arctic gas field

France’s Total is purchasing a 49 percent interest in Terneftegas, a subsidiary of independent gas producer Novatek, based in Russia’s Yamalo-Nenets Autonomous Okrug, Total said in a June 24 release. Novatek will keep the remaining 51 percent interest. Terneftegas holds a license to develop and produce gas and condensates in the onshore Termokarstovoye field, located about 155 miles east of the town of Tarko-Sale, where Novatek operates a processing facility for its own onshore production.

The Termokarstovoye field has a potential of more than 1.7 trillion cubic feet of gas and about 10.3 million metric tons of condensate, according to the release. Novatek and Total will carry out additional appraisal and development studies on the field with the objective of launching the project in 2011.

“Total is very pleased to become Novatek’s partner in the Russia Arctic region, which presents exciting development and production opportunities,” said Total’s CEO, Christophe de Margerie. “This agreement with Novatek consolidates the strategy that Total aims to implement in the Russian gas sector.”

“We welcome Total’s participation in the project,” said Novatek’s CEO, Leonid Mikhelson. “Their technological capabilities will complement our experience developing complex geological assets and facilitate the effective development of the remote Termokarstovoye field.”

Novatek was founded in 1994. Total has been present in Russia since 1989 and is operator of the Kharyaga oil field in the Nenets Autonomous Okrug (to the west of the Yamalo-Nenets Autonomous Okrug). Total also owns a 25 percent stake in Shtokman Development AG, which aims to develop the Shtokman gas field in the Barents Sea with Russia’s state-owned Gazprom as operator.

—Sarah Hurst